Are You Properly Insured? Should You Insure Your Kids? [VIDEO]

September is National Life Insurance Awareness Month – a good time to think about the value and importance of insuring yourself.

Too many Americans Have No Life Insurance At All

According to a recent Bankrate survey, 42% of Americans have no life insurance at all. (1) Many growing families have inadequate life insurance coverage. The Bankrate survey discovered that 37% of parents with children under age 18 had no policy at all. The Good news life insurance coverage has become much more affordable than it once was.

What Life Insurance Does for You

Life insurance is about managing risk, and if other people rely on you financially, you need to have it in place in case your passing puts them at financial risk. When a spouse or parent dies, there are financial matters to address: a sudden lack of income for a household, bills and mortgages or rent to pay, final expenses such as funeral or cremation costs, and the cost of children’s education. Without adequate life insurance coverage, a household is hard-pressed to meet these immediate, financially draining challenges.

How Much Coverage is Adequate For You?

Ideally, you should determine that with the help of an insurance professional. As a rough rule of thumb, the death benefit on a policy should be about 15 times your income.

Ideally, you should determine that with the help of an insurance professional. As a rough rule of thumb, the death benefit on a policy should be about 20x’s income in your 40’s 15x’s income in your 50’s. You can use this calculator to help determine what may be right for you.

What Kind of Insurance Should You Get?

There are basically 2 types of insurance: Temporary (Term) and Permanent (Whole Life). What’s right for you depends on so many factors you will probably need to discuss this with a professional. Term is significantly less expensive but will end after a specified period of time. If you are considering a term life policy, the term should not end before your envisioned retirement age.(2)

Should You Have Life Insurance on Your Children?

A small life insurance policy could help cover these expenses if the unthinkable occured:

Outstanding Healthcare costs

Lost income from taking time off to mourn

Funeral costs

Make Sure You Have Coverage in Place

While you may decide you prefer one kind of policy over another, the important thing is to have coverage in place – not just to reassure yourself, but those you love. Life insurance can help a spouse or a family maintain financial equilibrium at a time when it is most needed.

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Disclosure

Weiss Financial Group is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before implementing any strategy or recommendation discussed herein. Insurance products and services are offered through individually licensed and appointed agents in all applicable jurisdictions. The advisers at Weiss Financial Group are not attorneys of a law firm but can provide guidance to the client’s other professionals.